China plans $300 bn forex investment unit

Beijing: China’s central bank plans to create a new vehicle to manage investment funds worth a total of $300 billion to improve returns on the world’s largest stockpile of foreign exchange reserves, a person with knowledge of the matter told ‘Reuters’.

Photo: Bloomberg

The vehicle will operate two funds, one targeting investments in the US and the other focused on Europe, said the source, who asked not to be named because of the sensitivity of the matter.

The vehicle’s goal is to make more aggressive overseas investments for higher returns, said the source along with a second, independent source, who also declined to be named.

The People’s Bank of China, the central bank, was not immediately available for comment.